Firms need to destroy ` 400 cr of medicines to adhere to ban

NEW DELHI: The ban on 350-odd fixed dose combination (FDC) drugs will lead to destruction of medicines worth ` 400 crore. The stock of medicines, which are now found to be harmful for human consumption, had to be recalled from all the trade channels.

“The stock for the next two months, which was ready with the wholesaler, distributor or within the company storage, will now be destroyed. The stock is worth ` 400 crore,” said DG Shah, secretarygeneral, Indian Pharmaceutical Alliance, an umbrella body of domestic drug makers.

While the drug combinations, including wide-selling pain-killers, anti-diabetic medicines and respiratory therapies, will impact nearly 4%, or ` 3,800 crore, of the organised pharma retail market, the annual loss to companies will stand at around ` 2,000 crore.

“Taking off the trade margins, the industry will lose over ` 2,000 crore annually because of the ban, whereas traders will lose ` 1,200 to ` 1,800 crore,” Shah added.

Companies, however, put the loss figure even higher. “There will be loss of around ` 1,000 crore if we destroy our medicines,” said RC Juneja, CEO of Mankind Pharma, which is facing ban on 20 medicines from its portfolio. “Smaller players will dump the stock without caring for environment as for them financial losses are huge.” The company plans to move the high court against the government’s decision.